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Six new contracts awarded on Shah Deniz-2 project

The Shah Deniz and South Caucasus Pipeline consortia announced that they were moving forward at pace with the awards of six key contracts for the development of the Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects, BP reported on March 19.

The contracts, covering both project management services and construction, follow the final investment decisions announced on 17 December 2013. The contract awards underpin the schedule for project delivery and complement the progress being made across multiple areas of this major development, the report said.

Since the beginning of 2014 a number of key Stage 2 contracts have been awarded following on from three major contracts which were announced in December 2013.

First contract for the construction and commissioning support of the SCPX project facilities in Georgia has been awarded to the Bechtel Enka joint venture which is comprised of Bechtel International Inc. and ENKA İnşaat ve Sanayi A.Ş.. The cost of the contract is 528 million dollars. The scope of work under this contract includes construction of a 16km access road, two 120 megawatt compressor stations and a pressure reduction and metering station. Completion is expected in 2018.

The second contract for pipeline and facilities engineering and project management services for the SCPX project has been awarded to Chicago Bridge & Iron UK Limited (CB&I). The value of this contract is 174 million dollars and completion expected in 2018.

The contract for the initial phase of the subsea and pipeline engineering and project management services, amounting to 57 million dollars, has been awarded to Wood Group Kenny Limited (WGK).

The contract for engineering, procurement and construction of the offshore platform living quarters has been awarded to Apply Emtunga. The 32 million dollars contract should be completed in 2017. Assembly and commissioning of the living quarters will be carried out at the ATA fabrication yard in Bibi-Heybat near Baku where topsides units of the platforms will be constructed using local resources.

The 26 million dollars contract for horizontal directional drilling and line pipe installation for five river crossings of the SCPX project has been awarded to DrillTec GmbH. Completion is expected in 2016.

The contract for shaft and tunnel construction and line pipe installation for the two river crossings of the SCPX project (one in Azerbaijan and one in Georgia) has been awarded to CSM Bessac. This 24 million dollars contract is expected to complete in 2017.

The contract for development of the Shah Deniz offshore field was signed on June 4, 1996.

The agreement's participants include such companies as the State Oil Company of Azerbaijan Republic (SOCAR) with a 16.7 percent share, BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), the French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (nine percent).

The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.